Investors are already cheering the decision, given the worsening
economic conditions in the eurozone. They've been hoping the move
could spur growth across the euro area.

Draghi gave us more insight into the rate cut decision,
confirming that downside risks to economic growth were likely to
mitigate economic growth ahead. In that vein he told reporters,
"the world is heading to a mild recession by year end."

But he refrained from talking about the likelihood of a rate cut
next month. A unanimous decision to cut rates suggests that
further accommodative measures will be considered in the future,
particularly if the euro area economy continues in a downward
spiral.

He also disappointed analysts looking to see the ECB transition
to more powerful institution that could mitigate the crisis. He
told reporters that the ECB depends upon the EU treaties, and so
talking about a game plan if Greece were to cease participation —
something that is not in the treaties — is pointless.

On the other hand, his refusal to discuss what the ECB would do
in such a situation might also imply that the ECB's role could
change legally if the treaties were to be violated. While this
remains a distant dream, it nonetheless presents an interesting
opportunity to change the structure of the eurozone.

With "particularly high uncertainty," however, it remains hard to
predict what will happen across the euro area.